DBS, Wilmar ink Singapore's first SORA agribusiness loan

Wilmar has option to enter into a SORA interest rate swap.

DBS and Wilmar International have inked Singapore’s first SORA-based corporate loan for the agribusiness industry, according to an announcement.

At the start of each interest period, Wilmar will have the option to enter into a SORA interest rate swap (IRS) to give certainty of interest rates, making it the industry’s first SORA loan coupled with an IRS.

The S$200m loan and the IRS marks another milestone towards adopting SORA as the new interest rate benchmark for the Singapore Dollar cash and derivatives markets.

The loan facility’s interest rate comprises a compounded daily SORA rate calculated in arrears and an applicable margin.

Earlier this year, DBS successfully priced the issue of a SORA-referenced floating rate note, the first financial institution in Singapore to do so.